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Shanghai most likely headquarters for BRICS development bank

(chinadaily.com.cn) Updated: 2014-07-15 13:14

Shanghai most likely headquarters for BRICS development bank

A man walks past a signage decoration for the BRICS summit outside Sheraton Hotel, the venue for the third BRICS summit in Sanya, Hainan province April 14, 2011. [Photo/Agencies]

A Reuters report said Shanghai is most likely to become the headquarters of a development bank being launched by the BRICS emerging market nations, citing Russian presidential adviser Yuri Ushakov.

The BRICS countries will pool an initial $50 billion, with each contributing an equal amount, according to the news agency.

Leaders from Brazil, Russia, India, China and South Africa (BRICS), will announce the establishment of the BRICS development bank during the five countries' summit this week, ifeng.com reported, citing Brazil's ambassador to China.

Ambassador Valdemar Carneiro Leao, said the countries have reached agreement on major issues although some, mostly political, remain pending. Leao said they are immaterial to the founding and operation of the bank.

The bank will be launched at the summit even if some issues remain unresolved, Leao said.

The five will also set up a contingency reserves pool as an alternative to the International Monetary Fund, which could start operating by 2015, Reuters said. The reserves will be led by China which will inject $41 billion. Brazil, India and Russia will each contribute $18 billion with South Africa offering $5 billion, according to Chinese newspaper 21st Century Business Herald.

Shanghai most likely headquarters for BRICS development bank Shanghai most likely headquarters for BRICS development bank
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